Negotiating a lower commission rate is a smart way to save big.
For example, you'd save $10,000 if you reduced the total commission from 6% to 4% on a $500,000 home sale.
Recent legal changes — including the landmark NAR lawsuit — give buyers and sellers more leverage than ever to push for lower rates. Nearly half of agents (47%) expect buyer’s agent fees to decrease in 2025, and 34% predict that listing commissions will also drop.[1]
"Current market conditions provide a great chance to negotiate commission rates," says Trent Seigfried, a data analyst with Clever Real Estate. "The real challenge is sitting face-to-face with an agent and doing the negotiating."
If you’d rather skip the hassle of negotiating, services like Clever Real Estate make it easy. Clever negotiates reduced rates with agents from trusted brokerages like Keller Williams and RE/MAX. You’ll pay a low 1.5% listing fee instead of the standard 3% — saving $7,000 on average.
» Answer 5 short questions, connect with top agents, and pay half the typical commission.
🛡️ Why you should trust us
This article combines my personal experience as a real estate agent with insights from dozens of active industry professionals, giving you advice grounded in real-world expertise. I’ve successfully negotiated countless deals, both as an agent and an investor, which provides me with a unique perspective on what strategies actually work.
We also leveraged commission data and survey insights from Clever’s public relations team and consulted numerous industry experts to understand how the recent NAR settlement is shaping commission trends and negotiation strategies.
For further validation, you can explore my real estate experience and client feedback on my Zillow profile, or watch my recent appearance on Yahoo! Finance, where I shared insights into the changing real estate market.
The tips in this guide are backed by reputable data sources, including the National Association of Realtors, ensuring they're practical, reliable, and up-to-date. I aim to equip you with the knowledge and confidence to secure the best possible deal for your home sale.
How to negotiate realtor fees in 7 steps
- Know commission rates in your area
- Evaluate your negotiating power
- Shop around
- Improve your home's appeal
- Create value for the agent
- Work with an experienced agent
- Use the same agent for multiple transactions
1. Know the average commission rate in your area
🔎 Find your average commission rate
Pick your state from the list below to learn more about average commission rates in your market.
Real estate commission can differ significantly depending on your state, city, or even neighborhood. What’s normal in one place might seem expensive somewhere else.
For example, our research shows that listing commission rates average 2.57% in California, but in more affordable markets like West Virginia, they’re higher at 2.83%. Nationwide, listing commission rates average 2.82%, while buyer agent fees average 2.75%.
Knowing the typical rates in your area and what sellers pay for similar homes can give you an edge. This knowledge helps you have more confident, informed conversations with agents, making it easier to negotiate fair terms that work for both sides — which can be especially reassuring, considering that nearly 4 in 10 homeowners (38%) worry about paying too much in commission.[2]
🤝 Negotiating the buyer's agent commission
Nearly a year after the landmark NAR settlement, the rules of engagement for buyer's agent commissions are clear. With fees no longer advertised on the MLS, direct negotiation between a buyer and their agent is standard practice.[3]
So, who pays? While buyers are now formally responsible for their agent's fee, savvy sellers often cover this cost, typically from 2.0% to 2.5%, through negotiated concessions to attract a wider pool of buyers and secure stronger offers.
Brandi Brooks, a realtor in Memphis, Tennessee, says more sellers are asking about the consequences of not offering a commission. "Once they hear my explanation, most still pay the buyer’s agent, especially with homes sitting longer on the market.”
An experienced agent can help sellers navigate these changes, assess market conditions, and decide whether offering a buyer’s agent commission makes sense — and how much to offer if it does.
2. Evaluate your negotiating power
Realtors may be more open to negotiating commissions in today’s housing market, where higher interest rates and fewer active buyers and sellers create new challenges.
If you’re selling a higher-priced home or one in a highly desirable location, you might have even more room to negotiate.
Joanne Cleaver, a former real estate editor for the Milwaukee Journal Sentinel and author of a book on negotiating realtor commissions, suggests using market trends to evaluate what’s fair to pay an agent.
“Start by estimating how long selling your home might take — shorter for starter homes, longer for luxury properties — then calculate the typical commission an agent would earn and break it down into an hourly rate,” Cleaver advises.
For instance, if a house is likely to sell in two weeks, a realtor might only need 30–40 hours of work. On a $20,000 commission, that works to an hourly rate of $500–667.
This simple calculation gives you a clear picture of what you’re paying for and helps you propose a commission that feels fair — both to you and your agent.
💪 Factors impacting your negotiating power
Your home’s value
Higher-priced homes, especially in the luxury market, tend to attract lower commission rates without much negotiation. Why? A smaller percentage of a high-value home still delivers a significant payday for the agent.
“Agents might be more flexible on commission if you’re selling a higher-priced home or if you’re in a market where inventory is tight and listings are selling fast,” explains Randall Yates, a real estate broker based in San Antonio, TX. “But if your home requires extensive effort to market or sell, that flexibility may disappear.”
For instance, I once managed a listing valued at just over $1 million. Initially, I proposed a 3% commission rate, but I was content when the seller negotiated it down to 2.5% due to the substantial payout potential.
Ultimately, an agent might consider that a smaller percentage of a $1 million property can be more lucrative than a larger percentage of a $350,000 property—even though both might require the same level of effort to sell. Therefore, homes with a lower market value may not have as much leeway in negotiating commission rates.
Your home’s desirability
The condition and appeal of your home play a big role in an agent’s willingness to negotiate their commission. Properties that are well-maintained, located in prime areas, or packed with sought-after amenities are much easier to sell, making agents more open to lowering their rates.
“In a reasonably balanced market, homes that are 'picture-perfect' and move-in ready, with a reasonable price, give sellers leverage with agents,” explains Glenn Phillips, CEO of Lake Homes Realty. “These homes are the easiest to sell and don’t need extra agent effort.”
For instance, I once agreed to a 2% commission—below the market average—for a property in a highly desirable neighborhood with top-rated schools. I knew it would sell quickly and require minimal work on my part, making the lower fee worthwhile.
Conversely, less desirable homes—like fixer-uppers or properties needing major repairs—are much harder to market and sell. For these, agents are less likely to budge on commission. In my experience, taking on a challenging property at a reduced rate just doesn’t make sense, given the time and effort required to attract buyers and close the deal.
» Best home improvements to make before selling
Your local real estate market
Another crucial factor is the state of your local real estate market. In a seller's market, agents might be more flexible with their commission rates. The quick turnover of properties means they can afford to accept a lower rate for a faster sale.
"For example, if properties in your area are selling rapidly, often within 30 days, the broker's marketing expenses are likely lower, which could be a point for negotiation," says Michael J. Vestuto, a seasoned real estate professional based in Las Vegas, NV.
In slower markets, agents may reduce their rates to attract scarce business.
Some real estate agents (40%) think 2025 will be a seller’s market, and 37% predict it will be a buyer’s market.[1]
The sale season
The timing of your home sale can also influence your ability to negotiate commission rates.
During peak selling seasons, when the real estate market is bustling with activity, agents may have less incentive to lower their rates. This is typically the case in the spring and early summer when buyer interest is at its highest.
During slower periods, such as the winter or holiday season, or in markets experiencing low inventory, agents may be more open to negotiating their fees to secure any available listings.
This flexibility can be a strategic advantage for sellers who list their homes during these less busy times.
3. Shop around
Diverse agents and brokerages offer unique pricing and service models in the real estate market. While some are firm on commission rates, others may be more flexible, adjusting their fees and services to better align with your specific requirements.
From my experience, I'm more inclined to negotiate my rates if I know a seller is considering multiple agents. The competition creates a stronger incentive to adjust fees to secure business.
Consider exploring discount brokerages or agent matching services, which can provide built-in commission savings without negotiating. However, be mindful of potential differences in service quality.
Do your homework to find the right agent or service for you. Interviewing at least 2–3 agents or brokerages can help you gauge who offers the best combination of cost-effectiveness and quality service, ensuring you find the right fit.
You can easily compare top agents using a service like Clever Real Estate. Just answer a few questions about your sale, and Clever will send multiple agent recommendations based on your priorities. You can compare and interview agents, ask for more recommendations, or walk away without strings attached.
🚫 Avoid junk fees
Vestuto, the real estate professional based in Las Vegas, advises being vigilant about paying "junk fees" such as broker, administrative, or transaction fees. These fees are added to the commission and can increase the total cost of selling your home.
These types of fees are not mandatory and can often be negotiated. Here are some tips to avoid paying these fees.
- Ask questions in the interview. Don’t hesitate to ask why each fee is being charged and how it contributes to the sale of your home.
- Negotiate. Remember, every aspect of the realtor's fee structure is open to discussion. If a fee seems unreasonable or unclear, discuss it with your agent or broker.
- Compare agents. When interviewing agents, ask about all potential fees. Choose an agent who is transparent about their commission rate and all fees charged.
- Seek legal advice. If you're unsure about any fees, consider consulting a real estate attorney for clarification.
By staying informed and assertive, you can avoid unnecessary costs and keep more money in your pocket when selling your home.
4. Improve your home's appeal
Pre-listing improvements can significantly boost your home's appeal to potential buyers. Simple updates like repainting, landscaping, or deep cleaning carpets can make a big impact on your home's presentation, both in photos and during showings. And for many sellers, these updates feel essential — 46% worry that skipping repairs might prevent their home from selling.[2]
Research backs up the value of pre-listing repairs. Painting and landscaping consistently rank among the top home improvement projects for return on investment. In fact, 76% of sellers report making repairs or updates before or after listing their homes.[4]
Here’s what sellers most commonly tackle:
- Plumbing: 35%
- Kitchen updates: 31%
- Electrical system: 31%
- Painting or staining: 29%
- Roof repairs: 28%
While upgrades like a new HVAC system, garage door, or manufactured stone veneer yield some of the highest returns, focusing on the essential repairs above can be equally effective in increasing marketability.
Move-in-ready homes not only attract buyers but also make the selling process smoother for your real estate agent. Many agents, including myself, are more likely to offer lower commission rates for well-prepared and fairly priced homes since they sell faster.
If your home needs more than just cosmetic updates and you're uncertain where to begin, a pre-listing inspection is a smart move. It helps identify potential issues early, allowing you to address them proactively and avoid delays or complications during negotiations.
5. Create value for the agent
Partnering with a skilled agent is key, but you can also help make the transaction seamless and appealing. Present your home as "picture perfect," set a reasonable list price (not an aspirational one), and handle tasks the agent won’t have to manage.
"It gives the agent something of value in exchange for commission changes," advises Glenn Phillips, CEO of Lake Homes Realty.
When negotiating commission rates, think about ways to reduce your agent’s workload or costs:
- Offer to skip open houses or 3D tours if you don’t feel it necessary.
- Suggest alternatives, such as a friend who’s a professional photographer who could take listing photos for free.
Keep in mind that cutting key services to lower costs might backfire. Your agent's priority is to sell your home quickly and for top dollar, so eliminating important tools could impact your home's marketability — or even your agent's willingness to work with you. Strive to find a balance that benefits both you and your agent.
📉 Can sellers ask realtors to reduce their commission?
Home sellers can request that their listing agent accept a lower commission rate. The best time to negotiate this is before signing a listing agreement. It can be more difficult to secure a reduction once the agreement is in place and the home is listed, though exceptions exist.
For example, if buyers submit an offer that's lower than expected, a seller may agree to it because the agent reduces their commission, making the deal more financially favorable. However, the likelihood of this depends on local market practices. For tailored advice, consult a local realtor.
Alternatively, you can bypass uncomfortable negotiations by finding an agent who offers a lower rate upfront. Clever can help by connecting you with skilled agents who charge 1.5% instead of the traditional 3%. Just take a quick quiz to get matched with trusted, low-commission agents in your area.
6. Work with an experienced agent
Choosing an agent solely based on their willingness to accept a lower commission is often a mistake. Weak or inexperienced agents (less than two years of experience) may offer reduced rates, but they often lack the skills that seasoned professionals provide.
"Be careful with this, as you’ll need to guide that agent through the transaction yourself. While it might lower your commission, it doesn’t always lead to the best financial outcome," cautions Glenn Phillips, CEO of Lake Homes Realty.
Contrary to popular belief, not all newer agents charge less. According to Vestuto, a Las Vegas real estate professional, newer agents often face higher brokerage fees and stricter oversight, limiting their ability to offer competitive commission rates.
Beyond commission flexibility, experienced agents bring substantial advantages — and many sellers recognize the value of that expertise. In fact, 43% of homeowners say the guidance of a trusted agent would increase their confidence during the selling process.[2]
While 49% of agents sell only one or zero homes a year — and 70% sell five or fewer[5] — seasoned agents with 6–15 years of experience typically close 12 deals annually while working full-time hours.
Experienced agents' deeper market knowledge, stronger negotiation skills, and proven track record often translate to smoother transactions and better financial outcomes than newer agents, who average just two home sales per year.
7. Use the same agent for multiple transactions
Using the same agent to sell your current home and buy a new one can be a savvy negotiation strategy. By handling both transactions, the agent earns a higher total commission, making them more likely to negotiate lower rates on the selling side.
For example, I once worked with a client who sold their home to purchase a new construction property. I agreed to a reduced commission on the sale because I also earned a 2.5% commission on the purchase, resulting in a combined payout of about 5%.
This approach also offers added convenience since one agent gains a complete understanding of your preferences and needs, streamlining both transactions. It’s a win-win that can lead to smoother experiences and better deals for both parties.
👋 When to walk away from negotiations
Negotiations are about finding a win-win solution, but sometimes the best move is knowing when to walk away. If the terms don’t align with your needs or expectations, it’s okay to step back.
Set clear boundaries and deal-breakers before you start negotiating — and be ready to stick to them.
For example, maybe you expect the agent to handle open houses and staging recommendations. If they charge additional fees for these services beyond the commission rate, you may want to walk away.
Walking away can be a powerful tactic, but it’s important to use it strategically. Stand firm on what’s essential for you, but stay open to some compromise. The goal is to find common ground.
How much can I save by negotiating?
| Rate reduction | $500,000 sale | $700,000 sale | $1 million sale |
|---|---|---|---|
| 0.25% | $1,250 | $1,750 | $2,500 |
| 0.50% | $2,500 | $3,500 | $5,000 |
| 0.75% | $3,750 | $5,250 | $7,500 |
| 1.00% | $5,000 | $7,000 | $10,000 |
Even a small reduction in your realtor's commission rate, such as 0.25% to 0.50%, can result in significant savings, making negotiation worthwhile.
For instance:
- On a $300,000 home sale, a 0.25% reduction saves you $750, while a 0.50% reduction saves $1,500.
- On a $500,000 home sale, those same reductions save $1,250 and $2,500, respectively,
- For a $700,000 home sale, a 0.25% reduction saves $1,750, and a 0.50% cut saves $3,500.
- On a $1,000,000 home sale, a 0.25% reduction saves $2,500, and a 0.50% reduction saves $5,000.
What's the lowest commission a realtor will take?
Just how low can realtor commissions go? Realtors offering low commission rates might charge as little as 1–1.5%, well below the typical 2.5–3% that the seller's agents usually receive. This could save you $5,000–10,000 or more on a $500,000 property, for example.
However, the rate you can negotiate largely depends on a few key factors. Full-service agents, who support you throughout the entire selling process, typically charge higher fees than those who provide limited services. If comprehensive support is crucial for you, investing in a full-service agent might be worth the extra cost.
The specifics of your property also play a significant role. Agents are more likely to consider lower fees for high-value properties or homes in desirable locations expected to sell quickly.
Also, the current state of the local market influences commission flexibility. During busy seasons like spring and early summer, when demand is high, agents may be less willing to negotiate on fees.
Keep these considerations in mind as you discuss selling your home with potential agents to help reduce the costs associated with it.
Realtor fees: More negotiable than ever
Most agents talk about compensation with their clients and are open to negotiating.
Additionally, discount services like Clever and Redfin, with built-in low rates, continue gaining market share and reshaping consumer expectations about what a realtor’s services should cost. Clever, for example, offers a 1.5% listing fee.
As a result, many agents and brokers are becoming increasingly flexible on pricing and service structures, particularly when attracting sellers with desirable properties in high-demand markets.
Try our real estate commission calculator to see how much you could save by paying a lower realtor commission.
The average Clever customer saves $7,000 on their home sale.
- Pay just 1.5% in listing fees when you sell — half the typical rate
- Get dedicated support and guidance throughout your home sale
- Work with a top agent from a trusted brokerage like Keller Williams or RE/MAX
Clever's service is free, and there’s no obligation to commit to an agent. Enter your zip code and see how much you can save!
FAQ about negotiating realtor fees
What’s a typical commission rate?
Most real estate agents charge 2.5% or 3% of the home's sale price. Currently, the nationwide average real estate commission rate is 2.82% for the seller's agent and 2.75% for the buyer's agent. However, the rate isn’t set by law and can vary by location, market conditions, and individual agent.
Do realtors cut commissions to make a deal?
Yes, some agents are willing to reduce their commission to secure your listing or help close a deal, especially if the home is high value or expected to sell quickly. Others may offer discounts during slow markets or if they represent both the buyer and seller in the same transaction (called dual agency).
How do I ask an agent to lower their fee?
Start by respectfully asking if the agent is open to negotiating their commission. Point out factors like your home’s strong marketability, high price point, or local market conditions. You can also mention that you're comparing agents.
Will a lower commission affect service quality?
Not necessarily. Many agents offer full service at discounted rates, especially through low-commission brokerages like Clever Real Estate or Ideal Agent. Both companies vet their agents to ensure high-quality service. Clever offers a reduced 1.5% listing fee, and Ideal Agent offers 2%.
How to avoid realtor fees when selling?
You can avoid paying a listing agent by selling your home yourself, but that means handling pricing, marketing, showings, and negotiations without professional help. You might still want to offer a buyer’s agent commission, which means you wouldn't avoid realtor fees entirely.
Can the buyer negotiate real estate commission?
Yes. Under new rules from the NAR lawsuit settlement, buyers must sign a contract outlining their agent’s fee before the agent can begin providing services.
While sellers can still offer to cover all or part of the buyer’s agent commission as a concession during negotiations, anything not covered becomes the buyer’s responsibility.
Make sure you and your agent clearly discuss what will happen if the seller doesn’t cover the full fee — including whether you'll pay the difference out of pocket or adjust your offer terms.
